Broadcom (NASDAQ:AVGO) Shares Up 1.4% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s share price rose 1.4% during trading on Tuesday . The stock traded as high as $379.62 and last traded at $377.75. 26,964,982 shares traded hands during trading, an increase of 2% from the average daily volume of 26,497,613 shares. The stock had previously closed at $372.45.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Jefferies reiterated a Buy rating on Broadcom and kept a $550 price target, implying meaningful upside from recent trading levels. Analyst updates Broadcom (AVGO) stock price target
• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for Broadcom and kept a Buy rating, signaling continued confidence in the company’s profit growth. Broadcom analyst update
• Positive Sentiment: Broadcom and OpenAI’s Jalapeño AI accelerator partnership is drawing attention, reinforcing the company’s role in AI infrastructure and custom chips. What Broadcom (AVGO)’s Jalapeño AI Accelerator Partnership With OpenAI Means For Shareholders
• Positive Sentiment: Zacks highlighted Broadcom as a strong growth stock, reflecting ongoing investor interest in its earnings and growth profile. Here’s Why Broadcom Inc. (AVGO) is a Strong Growth Stock
• Neutral Sentiment: Broadcom is set to pay its next dividend, which supports its shareholder-return profile but is unlikely to be a major near-term catalyst. Broadcom to pay dividends tomorrow: Here’s how much 100 AVGO shares will earn
• Neutral Sentiment: Recent commentary has also focused on Broadcom’s sharp pullback and whether the stock is oversold, suggesting sentiment is mixed after the recent run-up and subsequent drop. Broadcom Just Cratered 16% in a Month. Is It Time to Sell, or Buy More?
• Negative Sentiment: Multiple reports note that Broadcom has seen recent insider sales, which can weigh on investor sentiment even if they do not change the company’s fundamentals. Monster insider trading alert for Broadcom (AVGO) stock
• Negative Sentiment: Some market commentary remains cautious, with bearish takes arguing the recent AI-driven enthusiasm may be vulnerable if expectations stop improving. Broadcom: This Is Not A Golden Opportunity

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. UBS Group set a $485.00 price target on Broadcom and gave the company a “buy” rating in a research note on Thursday, June 4th. Royal Bank Of Canada lifted their price objective on shares of Broadcom from $360.00 to $400.00 and gave the company a “sector perform” rating in a research note on Thursday, June 4th. KeyCorp reissued an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. Susquehanna restated a “positive” rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, May 28th. Finally, Wall Street Zen downgraded shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Price Performance

The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business has a 50-day moving average price of $411.18 and a two-hundred day moving average price of $362.85. The company has a market capitalization of $1.80 trillion, a price-to-earnings ratio of 62.96, a price-to-earnings-growth ratio of 0.64 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.40 by $0.04. The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom’s revenue was up 47.9% compared to the same quarter last year. During the same quarter last year, the firm posted $1.58 EPS. As a group, research analysts anticipate that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is 43.33%.

Insider Activity

In other news, insider Mark David Brazeal sold 4,825 shares of the business’s stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the sale, the insider directly owned 269,989 shares of the company’s stock, valued at $106,621,355.99. The trade was a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Justine Page sold 2,018 shares of the company’s stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $353.00, for a total transaction of $712,354.00. Following the completion of the sale, the director owned 18,164 shares in the company, valued at $6,411,892. This represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 59,385 shares of company stock valued at $21,301,057. 1.90% of the stock is currently owned by insiders.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in Broadcom during the 4th quarter worth $24,252,196,000. Cardano Risk Management B.V. lifted its position in shares of Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after purchasing an additional 11,414,701 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Broadcom by 118.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after purchasing an additional 10,145,377 shares in the last quarter. State Street Corp boosted its holdings in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.